Feiyu Technology (1022.HK) issued a positive profit alert and successfully achieved an annual turnaround from loss to profit.

Feiyu Technology (01022) issued a positive profit alert, expecting to turn a profit in the 2025 fiscal year, with a net profit range of 80 million to 120 million yuan (RMB). The core driver of this performance comes from the hit game "One Step Two Step". This HTML5 game has performed excellently since its launch in the second half of 2024, fully entering the revenue recovery phase in 2025, contributing significant incremental revenue to the company. The current internet traffic ecosystem is evolving towards "lightweight" development. With the success of "One Step Two Step", Feiyu Technology has initially validated its refined operational capabilities in the casual tower defense genre and is poised to capture more market share in the structural growth of the future HTML5 market.

Furthermore, the investment loss recognized by the group from an investment in a non-listed limited partnership enterprise has also narrowed significantly. It is expected that the related loss will decrease from approximately 17.4 million yuan last year to 6-9 million yuan. The group's related financial investment risk exposure has noticeably converged. Currently, Feiyu Technology has successfully broken through with differentiated products, and its fundamentals have significantly improved. With the release of the formal annual results announcement before the end of March, the market is expected to re-evaluate its valuation.